I put on a new position today after I saw the early morning bounce in financial names and C up 8%. I don't even need to read the results having read that their balance sheet was up 8% to $2trn and that the earnings were driven by lower credit loss reserves. Mark to fantasy has started to create bottom line profits. In addition, the lack of read across from the GS problems which surely are just the start of a political witch hunt (ok - so they are actually witches so not sure it qualifies as a witch hunt).
Given the charade that is this rally I do not feel comfortable being outright short so I have gone long 7% of the portfolio in DTN (Dividend stock ex financials) against 5% SEF (short US financials). I figure that at some point reality (cash, dividends etc) might be appreciated more by the market than the pipe dream earnings of the banksters.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment